KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||||
Long-Term Investments — 129.8% |
| ||||||
Equity Investments(1) — 128.7% |
| ||||||
Midstream Company(2) — 56.3% |
| ||||||
Aris Water Solutions, Inc. | 140 | $ | 1,975 | ||||
Enbridge Inc.(3) | 336 |
| 12,590 | ||||
Energy Transfer LP(4) | 2,632 |
| 33,317 | ||||
Energy Transfer LP — Series A Preferred Units(4)(5) | 2,000 |
| 1,895 | ||||
Enterprise Products Partners L.P.(4) | 1,227 |
| 31,312 | ||||
Enterprise Products Partners L.P. — Convertible Preferred | 18 |
| 17,177 | ||||
Magellan Midstream Partners, L.P.(4) | 105 |
| 5,603 | ||||
MPLX LP(4) | 816 |
| 28,255 | ||||
ONEOK, Inc. | 161 |
| 10,529 | ||||
Pembina Pipeline Corporation(3) | 559 |
| 18,358 | ||||
Plains All American Pipeline, L.P. — Series B Preferred Units(4)(9) | 2,452 |
| 2,256 | ||||
Plains GP Holdings, L.P.(10) | 1,591 |
| 22,132 | ||||
Plains GP Holdings, L.P. — Plains AAP, L.P.(6)(10)(11) | 690 |
| 9,592 | ||||
Targa Resources Corp.(12) | 476 |
| 35,244 | ||||
Western Midstream Partners, LP(4) | 256 |
| 6,650 | ||||
| 236,885 | ||||||
Natural Gas & LNG Infrastructure Company(2)(13) — 31.4% |
| ||||||
Cheniere Energy, Inc. | 230 |
| 36,220 | ||||
Cheniere Energy Partners, L.P.(4) | 119 |
| 5,869 | ||||
DT Midstream, Inc. | 263 |
| 13,177 | ||||
Kinder Morgan, Inc. | 583 |
| 9,938 | ||||
Streamline Innovations Holdings, Inc. — Series C | 1,375 |
| 6,669 | ||||
TC Energy Corporation(3) | 413 |
| 16,449 | ||||
The Williams Companies, Inc. | 1,450 |
| 43,651 | ||||
| 131,973 | ||||||
Renewable Infrastructure Company(2)(13) — 23.6% |
| ||||||
Atlantica Sustainable Infrastructure plc(3) | 811 |
| 22,381 | ||||
Brookfield Renewable Partners L.P.(3)(10) | 670 |
| 17,506 | ||||
Clearway Energy, Inc. — Class A | 231 |
| 6,851 | ||||
Clearway Energy, Inc. — Class C | 161 |
| 5,054 | ||||
Corporacion Acciona Energias Renovables, S.A.(3) | 175 |
| 6,787 | ||||
Enviva Inc. | 154 |
| 6,714 | ||||
Innergex Renewable Energy Inc.(3) | 544 |
| 5,798 | ||||
NextEra Energy Partners, LP | 308 |
| 20,408 | ||||
Northland Power Inc.(3) | 308 |
| 7,477 | ||||
| 98,976 |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||||
Utility Company(2) — 17.4% |
| ||||||
Algonquin Power & Utilities Corp. — Convertible Preferred | 49 | $ | 1,336 | ||||
Duke Energy Corporation(13) | 143 |
| 13,442 | ||||
Eversource Energy | 83 |
| 6,217 | ||||
NextEra Energy, Inc.(13) | 156 |
| 11,077 | ||||
Sempra Energy(13) | 131 |
| 19,645 | ||||
The AES Corporation(13) | 157 |
| 3,862 | ||||
TransAlta Corporation(3)(13) | 540 |
| 4,374 | ||||
Xcel Energy Inc.(13) | 206 |
| 13,301 | ||||
| 73,254 | ||||||
Total Equity Investments (Cost — $478,856) |
| 541,088 |
Description | Interest | Maturity | Principal Amount | |||||||||
Debt Investments — 1.1% |
|
| ||||||||||
Midstream Company(2) — 1.0% |
|
| ||||||||||
Energy Transfer LP(4) | 5.30 | % | 4/15/47 | $ | 250 | 211 | ||||||
EQM Midstream Partners, LP | 6.50 |
| 7/15/48 |
| 4,750 | 3,538 | ||||||
Plains All American Pipeline, L.P.(4) | 4.90 |
| 2/15/45 |
| 250 | 197 | ||||||
|
| 3,946 | ||||||||||
Natural Gas & LNG Infrastructure Company(2)(13) — 0.1% | ||||||||||||
Kinder Morgan, Inc. | 5.55 |
| 6/1/45 |
| 206 | 186 | ||||||
The Williams Companies, Inc. | 5.10 |
| 9/15/45 |
| 250 | 219 | ||||||
|
| 405 | ||||||||||
Total Debt Investments (Cost — $5,440) | 4,351 | |||||||||||
Total Long-Term Investments (Cost — $484,296) | 545,439 |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Liabilities | Strike | Expiration | No. of | Notional | Value | |||||||||||
Call Option Contracts Written(16) |
|
|
|
| ||||||||||||
Midstream Company(2) |
|
|
|
| ||||||||||||
Targa Resources Corp. (Premiums Received — $20) | $ | 82.50 | 4/21/23 | 200 | $ | 1,482 | $ | (14 | ) | |||||||
|
|
|
| |||||||||||||
Debt |
| (85,091 | ) | |||||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (41,491 | ) | |||||||||||||
Other Assets in Excess of Other Liabilities |
| 1,521 |
| |||||||||||||
Net Assets Applicable to Common Stockholders | $ | 420,364 |
|
____________
(1) Unless otherwise noted, equity investments are common units/common shares.
(2) Refer to the Glossary of Key Terms for definitions.
(3) Foreign security.
(4) Securities are treated as a qualified publicly-traded partnership for regulated investment company (“RIC”) qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as qualified publicly-traded partnerships. It is the Fund’s intention to be treated as a RIC for tax purposes. As of February 28, 2023, the Fund had 24.2% of its total assets invested in qualified publicly-traded partnerships.
(5) Energy Transfer LP (“ET”) Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“ET Series A Units”). ET Series A Units have a liquidation preference of $1,000 per unit and pay a quarterly distribution at a rate equal to the three-month LIBOR plus a spread of 4.028%. ET Series A Units are redeemable anytime at a redemption price of $1,000 per ET Series A Unit plus accumulated and unpaid distributions. As of February 28, 2023, the distribution rate was 8.892%.
(6) The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of February 28, 2023, the aggregate value of restricted securities held by the Fund was $33,438 (6.1% of total assets), which included $9,592 of Level 2 securities and $23,846 of Level 3 securities. See Note 7 — Restricted Securities.
(7) Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.
(8) Enterprise Products Partners L.P. (“EPD”) Series A Cumulative Convertible Preferred Units (“EPD Convertible Preferred Units”) are senior to the common units in terms of liquidation preference and priority of distributions, and pay a distribution of 7.25% per annum. The EPD Convertible Preferred Units are convertible into EPD common units at any time after September 29, 2025 at the liquidation preference amount divided by 92.5% of the 5-day volume weighted average price of EPD’s common units at such time.
(9) Plains All American Pipeline, L.P. (“PAA”) Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“PAA Series B Units”). PAA Series B Units have a liquidation preference of $1,000 per unit and pay a quarterly distribution at a rate equal to the three-month LIBOR plus a spread of 4.110%. PAA Series B Units are redeemable anytime at a redemption price of $1,000 per PAA Series B Unit plus accumulated and unpaid distributions. As of February 28, 2023, the distribution rate was 8.974%.
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2023
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
(10) This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for RIC qualification purposes.
(11) The Fund’s ownership of Plains AAP, L.P. (“PAGP-AAP”) is exchangeable on a one-for-one basis into either Plains GP Holdings, L.P. (“PAGP”) shares or PAA units at the Fund’s option. The Fund values its PAGP-AAP investment on an “as exchanged” basis based on the higher public market value of either PAGP or PAA. As of February 28, 2023, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.
(12) Security or a portion thereof is segregated as collateral on option contracts written.
(13) For purposes of the Fund’s investment policies, it considers NextGen Companies to be Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. For these purposes, the Fund includes Natural Gas & LNG Infrastructure Companies, Renewable Infrastructure Companies and certain Utility Companies as NextGen Companies.
(14) The Fund believes that it is an affiliate of Streamline Innovations Holdings, Inc. (“Streamline”). See Note 5 — Agreements and Affiliations.
(15) Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Fund’s option and are senior to common equity and Series A and Series B preferred shares in terms of liquidation preference and priority of distributions. Streamline Series C Preferred Shares are entitled to receive a quarterly dividend beginning on March 31, 2025, at an annual rate of 12.0%, which rate shall increase 2.0% each year thereafter to a maximum rate of 18.0%. Streamline Series C Preferred Shares are redeemable by Streamline at any time after March 31, 2025, at a price sufficient for the Fund to achieve a 20.0% internal rate of return on its investment.
(16) Security is non-income producing.
(17) Algonquin Power & Utilities Corp. Convertible Preferred Units (“AQNU”) consist of a 1/20, or 5%, undivided beneficial interest in a $1,000 principal amount remarketable senior note of Algonquin Power & Utilities Corp. (“AQN”) due June 15, 2026, and a contract to purchase AQN common shares on June 15, 2024 based on a reference price determined by the volume-weighted average AQN common share price over the preceding 20 day trading period. AQNU pays quarterly distributions at a rate of 7.75% per annum.
(18) The notional amount of call option contracts written is the product of (a) the number of contracts written, (b) 100 (each contract entitles the option holder to 100 units/shares) and (c) the market price of the underlying security as of February 28, 2023.
At February 28, 2023, the Fund’s geographic allocation was as follows:
Geographic Location | % of Long-Term | |||
United States | 79.3% | |||
Canada | 15.4% | |||
Europe/U.K. | 5.3% |
See accompanying notes to financial statements.